Tax Increases Will Hit the Middle Class

We’ve demonstrated over the years that raising the taxes on only the rich will not solve our fiscal problems. In fact, time-after-time if we simply try to tax the rich more, especially the top 10% of wage earners, they find very clever ways to avoid paying those higher taxes, whether it’s deferring compensation, structuring their compensation differently or just moving. In fact, in, “Two-thirds of the U.K.’s millionaires vanished — either left the country or sheltered their income — after the imposition of a 50 percent top-tax rate in 2010,” according to the U.K. Telegraph.

Here is a well-thought-out article from Caroline Baum from Bloomberg that demonstrates that taxing the rich will in-the-end come back to trap the middle class.